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MindTree Ltd. (MINT.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 30 days.
This is because of an earnings release. MindTree reported strong revenue growth of +7.3% qoq and improved EBIT
margins of 6.8% (+23bps qoq, -171bps yoy) despite annual wage hikes during the quarter for ~76% of its employees. Net
income to Rs345m (+7.8% qoq, +117% yoy) improved, remaining ahead of our estimates despite increase in effective tax
rates. Management indicated strong visibility for revenue growth in 2Q and expects to improve margins qoq over the
coming quarters through FY12e.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Equal-weight
Industry View: In-Line
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
MindTree Ltd. (MINT.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 30 days.
This is because of an earnings release. MindTree reported strong revenue growth of +7.3% qoq and improved EBIT
margins of 6.8% (+23bps qoq, -171bps yoy) despite annual wage hikes during the quarter for ~76% of its employees. Net
income to Rs345m (+7.8% qoq, +117% yoy) improved, remaining ahead of our estimates despite increase in effective tax
rates. Management indicated strong visibility for revenue growth in 2Q and expects to improve margins qoq over the
coming quarters through FY12e.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Equal-weight
Industry View: In-Line
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